The Cheese Shoppe's liabilities total $59,000 and its owners' equity is $124,000. Which of the following is true?
A) The total assets equal $65,000.
B) The firm's assets are $124,000.
C) The current liabilities are less than the current assets.
D) The total assets equal $183,000.
E) The firm's sales are $183,000.

Question

Quizplus · Accepted Answer

The total assets equal the sum of liabilities and owners' equity, therefore Total assets = Liabilities + Owners' equity = $59,000 + $124,000 = $183,000.

The Cheese Shoppe's Liabilities Total $59,000 and Its Owners' Equity